Information Transparency Research Articles

Intelligent manufacturing, auditor selection and audit quality

PurposeThe purpose of this paper is to examine the influence of intelligent manufacturing on audit quality and its underlying mechanism as well as the variation in this influence across different types of organizations.Design/methodology/approachThis research utilizes a difference-in-differences (DID) method to examine how enterprises that apply intelligent manufacturing choose auditors and impact their audit work. The study is based on 15,228 observations of Chinese-listed A-shares from 2011 to 2020.Findings(1) There is a strong correlation between intelligent manufacturing and audit quality. (2) This positive correlation is statistically significant only in state-owned enterprises (SOEs), those that have steady institutional investors and where the roles of the CEO and chairman are distinct. (3) Enterprises that have implemented intelligent manufacturing are more inclined to employ auditors who possess extensive industry expertise. The auditor's industry expertise plays a crucial role in ensuring audit quality. (4) The adoption of intelligent manufacturing also leads to higher audit fees and longer audit delay periods.Practical implicationsThis paper validates the beneficial impact of intelligent manufacturing on improving corporate governance. In addition, it is recommended that managers prioritize the involvement of skilled auditors with specialized knowledge in the industry to ensure the high audit quality and the transparency of information in intelligent manufacturing enterprises.Originality/valueThis study builds upon previous research that has shown the importance of artificial intelligence in enhancing audit procedures. It contributes to the existing body of knowledge by examining how enterprise intelligent manufacturing systems (IMS) enhance audit quality. Additionally, this study provides valuable information on how to improve audit quality in the field of intelligent manufacturing by strategically selecting auditors based on resource dependency theory.

EXAMINING THE CURRENT PRACTICE OF GOVERNANCE IN ZAKAT IN A MUSLIM MINORITY COUNTRY: THE CASE OF SRI LANKA

Zakat constitutes one of the pillars of Islam and religious practice in Islam aimed at supporting those in need. It also plays a major role in contributing to the socioeconomic development of society. To achieve efficient zakat management, institutions must focus on strong governance and proper management practices. This focus is essential due to the institution’s responsibility to manage effectively and provide transparent information to the public. Therefore, to meet stakeholder needs, non-profit organizations must prioritize governance. In Sri Lanka, the absence of specific laws or regulations governing zakat practice such as the Marriage and Divorce (Muslim) Act, the Muslim Intestate Succession Ordinance, and the Muslim Mosques and Charitable Trusts or Wakfs Act has led to a need for examination of current governance practices related to zakat collection and distribution. This study explores these practices and highlights how applying governance principles can help achieve the objectives (Maqasid) of zakat management in Sri Lanka. The research employs a doctrinal analysis of primary and secondary data, including statutes, practices, journals, and reports. Additionally, the study analyzes current zakat management practices through interviews with five respondents, including zakat practitioners and Shari’ah scholars, using thematic analysis. The findings reveal several issues: the causes of inefficient governance in zakat management, theoretical and practical problems with existing practices in Sri Lanka, gaps in the zakat governance framework, and conceptual and management deficiencies within zakat institutions. The study recommends developing a new governance framework for zakat management. This should include modern rules and practices based on Islamic law, staff training in fundamental Islamic knowledge, improved internal and external audit processes, and increased awareness among managers, donors, beneficiaries, and members of society.

The Silent Saboteur: The Impact and Management of Malicious Word-Of-Mouth in The Digital Age

In the digital era, the impact of malicious word-of-mouth on individuals and businesses is complex. Malicious online reviews and false information can spread quickly, causing serious damage to personal reputation and corporate branding. This article provides an in-depth analysis of the effects of malicious word-of-mouth on various aspects of the economy and society, and proposes effective strategies for response. Through specific case studies, such as the controversy surrounding the BOY LONDON brand, the public relations crisis of the Wahaha brand, the damage to Jiang Ping's personal image, and the "pink-haired girl" incident, this article illustrates how malicious word-of-mouth can erode consumer decision-making autonomy, pose threats to personal physical and mental health, and tarnish the image of brands and enterprises. To address these challenges, companies and governments must take proactive measures, such as monitoring and responding to negative information on the Internet to maintain a positive image and strengthening Internet regulation to ensure the authenticity and transparency of information and to prevent the spread of false information. At the same time, improving public media literacy helps people identify and resist the influence of malicious word-of-mouth.

Where is democracy nestled? Reflections on organizational degeneration based on an artists’ cooperative

PurposeThis article presents a compelling case study of a workers’ cooperative in the cultural sector. It offers a unique opportunity to delve into the tensions between managerial and democratic control, particularly in the context of heightened artistic claims. The pivotal role of an accountant in management for nearly two decades sparks a thought-provoking question about the potential for cooperative degeneration.Design/methodology/approachOur research employs a rigorous qualitative method, utilizing semi-structured interviews of six key members and a comprehensive analysis of legal, accounting and other media documents.FindingsOur findings offer a significant perspective, refuting any indications of organizational degeneration. The decision-making processes continue to uphold democratic principles. While the manager and his administrative staff wield substantial authority, this is justified by their duty to preserve the collective. This duty is executed under democratic control, facilitated by information transparency. The low level of democratic participation poses a challenge, but the manager’s initiatives are aimed at addressing this. The effectiveness of this control, however, relies on the active participation of the members, which acts as a strong deterrent against organizational degeneration.Originality/valueThe originality of our contribution lies in our reference to Chester Barnard whose reflections on industrial democracy have been forgotten, reflections linked to his conception of managerial authority. We also highlight the importance of empowering individual members, which leads them to consider the consequences of their actions. As a result, the manager is not placed in a situation where he has to decide alone, as the scope of his unilateral powers is de facto delimited.

Enhancing financial transparency in non-profit organisations: Challenges and integration of IFRS for SMEs, IFR4NPO, and GRI standards

This study examines the challenges and needs faced by non-profit organisations (NPOs) in Colombia regarding the adopting of the International Financial Reporting Standards (IFRS) for small and medium enterprises (SMEs), particularly focusing on sections 3 and 4. Employing a mixed-method approach, the research combines qualitative and quantitative methods. Surveys were conducted with Colombia NPOs, official documents were analysed, and comparative case studies were performed. In-depth interviews and participant observation were also utilised to gain a comprehensive understanding of the obstacles and current practices within the Colombian context. The findings reveal that NPOs in Colombia encounter significant difficulties in adopting IFRS due to the complexity of the standards, lack of specialised resources, and the need for specific training. Internal challenges such as deficiencies in staff qualifications and training, resistance to change, and technological limitations were identified. Externally, ambiguities in the legal framework and donor requirements were highlighted. The case study illustrated that, while there are similarities between IFRS for SMEs and the IFR4NPO project, specific adaptations are essential to address the unique needs of NPOs. This research underscores the necessity of developing additional guidelines or modifying existing ones to enhance the interpretation and application of IFRS in Colombia NPOs. It is recommended to implement proactive strategies based on education and legislative reform to improve the transparency and comparability of financial information. Adopting a more tailored and supported accounting framework will facilitate a more relevant and sustainable implementation, benefiting Colombian NPOs in their resource management and accountability efforts.

Analisis Penerapan Manajemen Keuangan Syariah pada Pengelolaan Dana Bantuan Operasional Sekolah (BOS) di Madrasah Ibtidaiyah Negeri 2 Tanjung Jabung Barat

Madrasah Ibtidaiyah Negeri 2 Tanjung Jabung Barat is one of the school located in the village with quite a large number of students. As a school that focuses on Islamic religious subjects, school need to understand the principles of sharia financial management in managing School Operational Assistance (BOS) funds in order to avoid problems that can hinder the educational process. Therefore, this research aims to evaluate and analyze the application of sharia financial management in managing BOS funds in school. This research uses qualitative methods with descriptive research type. The data sources used are primary and secondary data. Data collection methods include observation, interviews, documentation, and drawing conclusions. The results of the research show that the implementation of sharia financial management in managing BOS funds at Madrasah Ibtidaiyah Negeri 2 Tanjung Jabung Barat, especially the implementation of planning, organizing, implementing and controlling functions, has been carried out well; However, transparency of information to the committee still needs to be improved. The use of funds needs to be aligned with priority needs for better efficiency, and detailed reporting is not yet fully optimal. Increasing transparency and committee involvement is very important to increase public trust in Madrasah financial governance.

Information Asymmetry Effect on Stock Liquidity Effect on Dividend Payout in Market Microstructure in Indonesia

The impact of market microstructure in shaping corporate governance has been distinguished in several previous research. Market Microstructure becomes prominent factor in emerging markets. This study tested the effect of market microstructure, in the scheme of stock liquidity, on dividend payouts. This study has set focus mainly on the impact of stock liquidity on the corporate payout policy. Later, the researcher examined the interaction given to the stock liquidity factor with information transparency and agency problem properties since the researcher believed that transparency is linked to the and, subsequently, affecting the corporate agents. This research examined observations using quantitative research method, Tobit regression on 256 non-financial firms of the Indonesian capital market during 2010-2018. Stock liquidity significantly impacted dividend policy. The result showed robustness with other stock liquidity measures. This study found that information asymmetry and agency problems had a moderation effect on stock liquidity effect on dividend payout. However, the interaction of stock liquidity and disparity of control rights and cash flow rights did not give a moderation effect on the dividend payout policy. The result supports the notion that dividend payout is an outcome of firm good governance and an inverse of dividend signaling theory.

How does informed trading affect credit bond spreads: Evidence from China's interbank bond market

China's interbank bond market is an institutional investor market, and transactions are more information-based. Whether and how informed trading can affect credit bond pricing is an urgent problem to be solved in the study of China's bond asset pricing. This paper uses credit bond issuance and trading data and stock high-frequency trading data from May 2014 to December 2020 to construct informed trading probability and bond liquidity indicators. Using regression analysis and adjustment and mediation effect test methods, this paper studies the impact of informed trading on China's interbank credit bond pricing and the channel role of liquidity. The results show that the probability of informed trading has a significant positive impact on credit bond spreads. Informed trading leads to an increase in credit bond spreads by amplifying bond illiquidity. The amplifying effect of informed trading on credit bond spreads is stronger for bonds with high illiquidity. The amplifying effect of informed trading on credit bond spreads will be stronger in private enterprises, enterprises with low information transparency, and high debt ratios. This study reveals the risk nature of informed trading in China's interbank bond market, which helps to deepen the understanding and management of the bond market.

A Study on the Relationship Between Corporate ESG Performance and Overall Corporate Performance: An Analysis of the Mediating Effect of Information Transparency

This paper aims to explore the impact of ESG (Environmental, Social, and Governance) information transparency on corporate performance, with a particular focus on its mediating effect in corporate governance and the fulfillment of social responsibilities. Through an in-depth analysis, this study seeks to reveal how ESG information transparency enhances corporate governance and social responsibility, ultimately influencing financial performance and market value. A quantitative research approach is adopted, selecting several listed companies as samples and collecting their ESG reports and financial data. By constructing a model, the relationships between ESG information transparency, corporate governance, social responsibility fulfillment, and overall corporate performance are analyzed. Data sources include corporate annual reports, ESG reports, and relevant databases. Path analysis and mediation effect tests are employed to ensure the reliability and validity of the research results. This study not only examines the mediating effect of ESG information transparency on corporate performance but also delves into the moderating roles of corporate governance and social responsibility fulfillment. The findings provide essential theoretical support for companies formulating ESG strategies and offer substantial references for policymakers and investors.

Refining and expanding accountability policy for English learners to support Lau implementation: A critical policy analysis

ABSTRACT Title I accountability requirements under the Every Student Succeeds Act (ESSA) represent the present-day instantiation of Lau, which requires schools to provide a program for English learners (ELs) that supports their meaningful engagement and to provide transparent information about EL program quality. This study uses critical policy analysis to explore whether ESSA accomplishes what it intends. Employing a parallel mixed methods design, we first analyze longitudinal data from two states to examine whether their approaches to assessing EL students’ academic performance and progress support valid claims about EL achievement. Then, we analyze focus group and interview data from educators, advocates, and families in states to understand how they assess the quality of a school’s EL program. Taken together, our findings highlight the need for the incorporation of multiple perspectives into the design of state accountability systems and for the development of robust data systems that facilitate the sharing of accurate and nuanced information related to EL student outcomes and opportunities.

The Impact of Financial Information Transparency on Corporate Governance Effectiveness

In today’s rapidly changing business environment, financial information transparency has become a key indicator for measuring the quality of corporate governance. This paper introduces the basic concept of financial information transparency, the relationship between financial information transparency and corporate governance, and focuses on the impact of financial information transparency on stakeholders, challenges and strategies to improve financial information transparency, and finally predicts the development trend of financial information transparency. It is hoped that the analysis of these issues will be helpful in improving the transparency of corporate financial information and promoting more effective and transparent corporate governance practices.

Enhancing enterprise investment efficiency through artificial intelligence: The role of accounting information transparency

In the post-COVID-19 era, with global economic recovery as a critical goal, the rapid development of artificial intelligence (AI) has emerged as a key driver of economic growth and transformation. AI not only acts as a powerful catalyst for economic development but also significantly impacts enterprise investment efficiency (EIE). This paper explores the influence of AI on EIE, with a focus on the role of accounting information transparency. Using data from Shanghai and Shenzhen A-share listed enterprises between 2010 and 2021, the findings demonstrate that AI development significantly enhances EIE. These results are confirmed through robustness tests, including variable substitution, and addressing endogeneity and sample limitations. Mechanism analysis reveals that AI improves EIE by increasing the transparency of accounting information. Additionally, heterogeneity analysis shows that AI has a greater impact on the investment efficiency of high-tech and technology-intensive enterprises, non-state-owned enterprises, and those located in highly urbanised areas, such as ‘Broadband China’ pilot cities. This paper examines how AI development affects EIE through the lens of enterprise accounting information transparency, offering actionable insights for enhancing accounting disclosures and serving as a valuable resource for enterprises navigating the technological transformation of the modern era.

The Ripple Effects of Financial Fraud: Investor Trust and Risk Appetite Post-Kangmei Pharmaceutical

The financial fraud at Kangmei Pharmaceutical (stock code: 600518) has had profound implications for retail investors. This paper, through data analysis, explores the correlation between information asymmetry and investment outcomes for retail investors. Information asymmetry often leaves retail investors unable to access the true financial state and operational conditions of companies, leading them to make speculative investments. Post-exposure, as information transparency increased, retail investors became aware of the company's financial issues and rushed to sell, causing a stock plunge. This highlights how information asymmetry not only affects investment decisions but also amplifies market volatility. To mitigate risks from information asymmetry, regulators must strengthen oversight and penalties, improve disclosure transparency and authenticity, while investors need to enhance self-protection awareness and information gathering and analysis capabilities. Only then can we minimize the impact of information asymmetry on retail investors and uphold fairness and stability in financial markets. This paper suggests that by implementing a robust regulatory framework and encouraging proactive investor education, we can better safeguard retail investors from the detrimental effects of information asymmetry, thereby fostering a more resilient and equitable financial market ecosystem.

The power of the many: how retail investor attention reshapes corporate trade credit and bank loans

Our study on China-listed firms from 2011 to 2022 reveals that heightened retail investor attention significantly decreases corporate trade credit and boosts bank loan accessibility. This effect is consistent across different robust checks, such as propensity score matching and industry/regional shock controls. We find that this attention enhances information transparency, influencing both trade credit and bank loans. Notably, the impact is more pronounced in the absence of professional information intermediaries. This research deepens the understanding of retail investor attention's economic impact, shedding light on the substitutive relationship between trade credit and bank loans.

That uncanny valley of mind: when anthropomorphic AI agents disrupt personalized advertising

This research, grounded in privacy calculus theory, examines how the anthropomorphization of AI agents affects consumers’ perceptions of privacy risks associated with personalized ads. Specifically, it explores strategies to reduce potential negative impacts. In Study 1, participants expressed concerns that highly anthropomorphized chatbots might possess human-like autonomous intentions to misuse personal data, a phenomenon referred to as the ‘uncanny valley of mind’. In contrast, participants felt more secure, in control, and less concerned about privacy when interacting with a mechanized, less human-like chatbot. To address this backfiring effect, Study 2 explored the role of algorithmic disclosure – where companies provide transparent information about the underlying algorithms, data handling procedures, and personalization criteria. This strategy effectively mitigated privacy concerns, thereby preventing the negative effects associated with highly anthropomorphized AI chatbots. These findings offer valuable insights for marketers utilizing AI chatbots to craft effective, personalized messages based on social media data.

Unravelling the Environmental Challenges: a State-of-the-Art Review of the Legal Framework of Solid Waste Management in Metropolitan Cities of India

Abstract This article provides insights into the challenges and current state of solid waste management in metropolitan cities of India. It emphasizes the importance of legal regulations in ensuring effective waste management to address environmental concerns. This research highlights the need for coordinated efforts among public authorities, adopting technologically advanced best practices globally, and incorporating Waste Hierarchy and Circular Economy concepts for efficient waste management. By addressing challenges like poor community engagement, understaffing, and political interference, the article underscores the significance of robust legal frameworks and strategic policies to mitigate environmental impacts and improve waste management practices in metropolitan cities. Recommendations include enhancing transparency in environmental information, establishing sustainable waste management systems, improving legislation, and promoting stakeholder engagement.

Perbandingan Sustainability Report antara Bank Syariah Indonesia (BSI) dan Bank Mandiri Berdasarkan Global Reporting Initiative (GRI) Tahun 2022-2023

This research aims to determine the comparison of sustainability reports between Bank Syariah Indonesia (BSI) and Bank Mandiri based on global reporting initiative (GRI) 2022-2023 or to what extent are these two banks committed to implementing GRI standards in presenting transparent and accountable sustainability information? This research uses comparative qualitative descriptive research. By collecting data using secondary data obtained from sustainability reports published by BSI and Bank Mandiri 2022-2023 which can be accessed on their respective websites. This research shows that both banks have a strong commitment to economic, environmental and social performance, although with different approaches and scales. Bank Mandiri has a higher operating scale and numbers, while BSI shows consistent growth and focuses on social and environmental aspects in line with sharia financial principles. This research provides insights into best practices and areas of improvement in sustainability reporting in the banking industry.

Improving the clarity of doctoral admissions webpage information: a UK institutional case study

ABSTRACT This paper explores data from an institutional case study on doctoral admissions at one UK university. Using a multi-part design, this paper first shares the results of a desk review of institutional webpages, and then reports on empirical research with academic directors of postgraduate research (n = 12), doctoral programme officers (n = 8), doctoral supervisors (n = 19), and doctoral researchers (n = 15) on their perceptions of, and interactions with, doctoral admissions webpage information. The webpage review identified seven categories of information departmental doctoral admissions webpages typically convey. The study reveals that doctoral admissions webpages have complex functions and diverse intended audiences. We document the key activity of webpage work and how this is divided. We also highlight potential information gaps for certain audiences. Our paper aims to contribute insights to create more transparent and accessible doctoral admissions information for all potential applicants. We conclude by sharing recommendations to enhance the quality of such information.

Measuring sustainable business performance in Malaysian hotels: The roles of green information, green innovation strategic orientation, and digital technology implementation

This study investigated the relationship between strategic orientation, green innovation, the implementation of digital technology, and financial and non-financial performance. It has also considered the factors of green information proactiveness, transparency, and formality. The research was conducted in the Malaysian hotel industry, using data from 401 employees and 74 managers. Path analysis was performed using partial least squares structural equation modeling. The results indicated that a strategic orientation towards green innovation is positively correlated with green information proactiveness and transparency, that implementing digital technology is positively linked to green information proactiveness and transparency, that the formalization of green information positively impacts financial performance, that non-financial performance is influenced by both proactive and formal green information practices; and that the proactiveness, transparency, and formalization of green information act as mediators in the relationship between green innovation strategic orientation and financial performance. This research provides valuable insights to help the hotel industry move towards a more environmentally responsible and technologically prosperous future by examining these relationships.

Can information transparency strengthen authoritarian accountability? An empirical study of open-government-information litigation in China (2008–2018)

China’s 2008 national regulation on open government information (OGI) triggered a new wave of administrative litigation against governments calling for their release of classified information. Many scholars have debated the effects of OGI regulation and litigation on government accountability. Thus, this study examines 19,076 first instance OGI cases from 2008 to 2018 and proposes a typology of accountbility to explore whether and how information transparency can strengthen authoritarian accountability in China. The data suggests that information transparency boosts the amount of litigation and increases the plaintiffs’ winning rates against the state, which seems to fit the conventional-wisdom However, the interpretation of such patterns needs to incorporate two contingent conditions. First, China’s OGO litigation centers around urbanization-related disputes, such as housing demolition and land acquisition. The data futher reveals that urbanization stimulates OGI litigation but decreases the plaintiffs’ winning rates, and information transparency also has no impacts or even negative association with their winning rates, suggesting that OGI litigation mainly serves as a channel to release public grievances (as pressure-releasing accountbility). Second, our data also shows that plaintiffs’ winning rates are much higher when citing procedural clauses than content clauses in the OGI Regulation, suggesting authoritarian accountability is more procedural than substantive. Our findings offer a nuanced discussion on authoritarian information governance and accountability.